Regulators Urged  to Integrate Beneficial Ownership Register into Enforcement, Compliance Frameworks

Oluchi Chibuzor

The Civil Society Legislative Advocacy Centre (CISLAC) has urged various regulatory bodies in the country to integrate the Beneficial Ownership Register into their compliance and enforcement frameworks in the country.

This, the civil society organisation highlighted, would help the country in combating corruption, illicit financial flows (IFFs), tax evasion, and money laundering.

Speaking at a two-day sensitisation and capacity-building workshop on the country’s Beneficial Ownership Register,  in Lagos, Executive Director, CISLAC, Mr. Auwal Rafsanjani, said the register would help in tracking, detecting, and prosecuting financial crimes.

He noted that since the launch of Nigeria’s Open Central Register of Beneficial Ownership also known as the Persons with Significant Control (PSC) Register on May 25, 2023, the country has demonstrated global leadership in financial transparency.

According to him, “The PSC Register is not just a database, it is a powerful tool for reform. By mandating the public disclosure of individuals with significant control over companies and Limited Liability Partnerships (LLPs), it dismantles layers of secrecy that enable illicit financial flows and corporate malpractice.

“It will Improve compliance and enforcement mechanisms, ensuring that companies adhere to disclosure requirements, thereby reinforcing accountability in the corporate sector.

“I urge regulators to integrate beneficial ownership data into their compliance and enforcement frameworks. Also the BMOs and the private sector embrace full compliance with beneficial ownership disclosure requirements, fostering a transparent and competitive business environment.”

Rafsanjani emphasised that corporate secrecy has long facilitated financial misconduct, draining resources meant for critical sectors like healthcare, education, and infrastructure.

He explained that Nigeria loses billions of dollars annually to illicit financial flows, with anonymous shell companies serving as conduits for corruption and capital flight.

According to him, “Corporate secrecy has long been a breeding ground for corruption, money laundering, and illicit financial flows, which drain national resources meant for healthcare, education, infrastructure, and economic development. Nigeria loses billions of dollars annually to illicit financial flows, with shell companies and anonymous corporate ownership structures serving as key enablers of fraud and capital flight.”

He noted that when fully adopted, it would provide enforcement agencies with actionable data to track illicit financial activities, while increasing investor confidence by fostering an open and trustworthy business environment.